Mobile Virtual Network Operator Market Size, Share And Trends Analysis Report By Type, By Service Type, By Contract Type, By Operational Model, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global mobile virtual network operator market size was valued at USD 76.02 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 7.7% from 2023 to 2030. The increasing adoption of mobile virtual network operator (MVNO) can be attributed to affordable plans, flexible options, no credit checks, wide device compatibility, and specialized plans. Moreover, the companies in the MVNO market have been involved in various strategic initiatives such as mergers, acquisitions, partnerships, and collaborations, among others. For instance, in July 2023, Spitfire Network Services Limited (U.K.-based provider of fixed line voice, internet, and WAN services to business) declared a full MVNO deal with BT Wholesale (U.K.-based telecom service provider). According to the partnership, Spitfire's latest generation core network will be interconnected with BT Group's EE 4G and 5G Radio Access Network, offering better security, first-class connectivity, and flexible and innovative billing plans.

The advancement in 5G technology is expected to further drive the growth of the market, owing to the benefits including network slicing, fixed wireless access, and eSIMs, among others. The companies in the mobile virtual network operator (MVNO) market have been proactive in coming up with initiatives to tap into the 5G MVNO market. For instance, in February 2023, Celcom Berhad (Malaysian MVNO provider) announced the rollout of 5G. According to the company, Customers with a 5G-supported Android device and a subscription to a 5G pass are eligible to experience free trials from 15th February onwards. To access the free 5G trial services, customers must subscribe to any high-speed data plan ranging from 10 GB to 200 GB. The 5G roaming services will also be available in more than ten countries. Such initiatives will attract consumers to the market owing to the benefits of 5G, thereby driving the growth of the MVNO market over the forecast period. To access the free 5G trial services, customers must subscribe to a high-speed data plan ranging from 10GB to 200 GB. Currently, 5G roaming service is available in more than ten countries.

Integrating advanced technologies such as AI and ML into the MVNO is expected to accelerate the MVNO market growth over the forecast period positively. MVNOs use AI technology to improve customer experience, increase efficiency, and streamline operations. Although previously mentioned, some of the common AI usage varies between MVNOs and depends upon size, resources, and investment into technology. Moreover, various companies in the mobile virtual network operator industry have been involved in various initiatives aimed at the integration of AI into MVNO technologies. For instance, in July 2023, Mobile X Global, Inc. (U.S.-based MVNO) pledged its allegiance to AI and the cloud. The company launched its commercial wireless services in the U.S. using AI technology and developed a cloud-native platform for its offerings. Such initiatives taken by the company operating in the MVNO market would attract customers into MVNO who utilize AI, thereby driving the growth of the MVNO industry over the forecast period.

The integration of blockchain technology is another major technological factor driving the growth of the market for MVNO; the integration of blockchain technology would offer various benefits to MVNOs, which include maintaining a tamper-proof record of all transactions, which reduces/eliminating the chances of billing discrepancies, and fraud. Blockchain technology can significantly improve the operational efficiency of MVNOs, as MVNOs rely on complex web intermediaries for services, including roaming, which increases costs and inefficiencies. However, blockchain technology can automate all these processes that can be simplified and automated, thereby helping to reduce operational costs and enhance customer service. Blockchain technology also helps in the MVNO market by increasing transparency and providing the transaction records of all transactions, which helps users understand the areas being charged for. All these attributes contribute to the rapid adoption of blockchain technology in the mobile virtual network operator (MVNO) industry, thereby fueling the growth of the MVNO market over the forecast period.

The evolution of hybrid MVNO is another major trend in the market, gaining traction in recent years. The proliferation of tablets and smartphones and seamless connectivity have become a crucial part of wireless operators' service offerings and a requirement to stay ahead in the competitive landscape. With the 5G technology advancement and shared spectrum, MSOs (Multiple System Operators) actively evaluate offload prospects for improving MVNO economics. They are planning to deploy their mobile radio infrastructure in certain geographic areas. These MSOs are required to deal with three disparate sets of wireless infrastructures: MSO's own 4G/5G network, MNO's 4G/5G network, and MSO's community Wi-Fi network, which is creating a new set of MVNO models named hybrid-MVNO, which enables MVNO to offload the traffic of MNO network subscribers to Wi-Fi networks and MVNO-owned mobile networks when inside the coverage of wireless networks.

Type Insights

The discount segment accounted for the largest share of 24.4% of the overall revenue in 2022. The MVNO market is expected to witness significant growth in the M2M segment owing to the rising adoption of cellular connectivity in machines, from vehicles to vending machines. Advancements in technology in the 3G M2M segment, initiatives by MNOs to expand their service portfolio, and the extension of mobile network coverage are the main factors supporting the growth of MVNOs in the M2M market. There has been significant growth in the number of MNOs collaborating with M2M application service providers, which is anticipated to fuel the demand for mobile network element deployment in M2M applications over the forecast period.

The M2M segment is projected to grow with the highest CAGR from 2023 to 2030. MNOs offer various service plans and products for different markets with fewer users, leading to expensive and inefficient operational and business support systems. The cost of retaining and acquiring new customers is relatively high, mainly for fixed-term contracts. The MVNOs can help overcome cost issues, optimize resource allocation, and improve the Quality of Service (quality of service), contributing to the market's growth. Moreover, low-cost access to voice and data services is expected to be the key interest for customers.

Operational Model Insights

The full MVNO segment accounted for the largest share of 60.8% of the overall revenue in 2022. The full MVNO segment led the market in terms of revenue in 2022. Implementing a full MVNO network infrastructure involves minimal capital investment and provides complete call control, allowing customers to call internationally at highly discounted rates. The emergence of MVNOs results from regulatory interventions to lower the barriers to entry and eventually increase competition and strategic decisions undertaken by MNOs.

The reseller MVNO segment is projected to grow with the highest CAGR from 2023 to 2030. MNOs have mobile licenses, infrastructure, and customer relationships with their end users and can handle network routing. They generally have roaming deals with foreign counterparts. However, to expand their existing customer base and operations, MNOs collaborate with MVNOs and target niche segments. To avoid direct competition with MNOs, MVNOs focus on offering differentiated services. They aim to capitalize on roaming opportunities by providing special services to tourists and youth. MVNOs aid in increasing revenue for MNOs by providing wholesale deals, increasing network utilization, and creating their MVNOs by launching sub-brands.

Service Type Insights

The 4G MVNO segment is projected to occupy the largest share of the market in 2022, occupying around 70% in 2022. The growth of the 4G MVNO segment can be attributed to the increasing demand for high-speed mobile data and improved connectivity. Since 4G technology enables seamless video streaming, improved browsing experiences, and app downloads, consumers are 0opting towards 4G technology which has been a major contributor to the growth of the 4G MVNO segment over the forecast period. Moreover, the 4G MVNO had capitalized on the increasing demand for smartphones and data-savvy devices to cater to a wide range of users, businesses, and IoT devices. The combination of affordable data plans and flexible pricing options has paved the way for the 4G MVNO segment growth in the MVNO market by service type over the forecast period.

The 5G MVNO segment is projected to witness the highest growth rate of over 10% from 2023 to 2030. With the rollout of 5G technology globally, 5G MVNO has been leveraging the capabilities of 5G technology, including high data speed, low latency, and increased network capacity, enabling improved user experience. The increasing demand for data-intensive applications has resulted in the growth of 5G MVNOs, and the growth of this segment is expected to continue stronger over the forecast period 2023 to 2030.

Contract Type Insights

The prepaid MVNO segment is projected to occupy the largest market share of over 70% in 2022. The growth of the prepaid MVNO can be attributed to benefits offered to the customer, which include flexible and cost-effective alternatives compared to traditional postpaid plans. Moreover, the companies in the MVNO market have been coming up with various initiatives such as new product launches, mergers, and acquisitions, among others which have helped drive the growth of the prepaid MVNO. In September 2022, Xiaomi (a Chinese smartphone maker) announced two new prepaid wireless plans as its debut in the MVNO industry to compete against the Chinese national carriers. The entry of new players in the mobile virtual network operator (MVNO) market, which has a wide customer base and popularity, would drive the adoption of the prepaid MVNO, thereby driving market growth.

The postpaid MVNO segment is projected to witness a significant growth rate of around 7% from 2023 to 2030. The postpaid MVNO majorly caters to a section of the customers who opt for monthly billing and are going for long-term contracts for which, in return, additional benefits are offered to customers. The postpaid MVNOs offer competitive pricing, unlimited data, and truly international calling, among others which have impacted the growth of the postpaid MVNO segment of the MVNO market over the forecast period.

End-use Insights

The consumer segment accounted for the largest share of 77.4% of the overall revenue in 2022. Increasing network speed and using advanced devices enable the growth of data applications such as internet browsing and video streaming. Increasing investments are made to improve network coverage and growth in Mobile Broadband (MBB) connections. The MVNO model offers benefits such as time efficiency and cost-effectiveness, which are expected to lure more consumers, accelerating the growth of the consumer segment.

The enterprise segment is projected to grow with the highest CAGR from 2023 to 2030. Managing connected living, personal data, and rising e-commerce activities are also anticipated to provide significant growth opportunities for key players operating in the market, along with increasing consumer benefits. Intelligent networks connecting a wide range of devices enable increased productivity of enterprises. The partnership between MNOs and MVNOs depends on brand reputation, distribution network, promotional strategies, and access to segments. The MVNO model is turning from voice to a more data-centric experience. MVNOs worldwide are opting for data-capable smartphones to expand their business.

Regional Insights

The European region dominated the market in 2022, accounting for a market share of 47.4% in 2022. The growth can be attributed to the favorable regulatory framework, which is expected to play a crucial role in developing the MVNO. Countries such as the U.K., Germany, and the Netherlands are projected to impact regional growth positively over the forecast period. Data services are expected to be the key services for regional growth over the forecast period.

Asia Pacific and MEA are projected to experience significant growth over the forecast period. The growth in this region can be attributed to the phenomenal expansion of the telecom services industry. Emerging economies in the region, such as India, Vietnam, Myanmar, and China, are making efforts to expand and modernize their telecommunication services. Southeast Asian countries such as Singapore, Thailand, and the Philippines are also estimated to contribute substantially to the regional market expansion over the forecast period.

Countries with advanced cellular networks, such as Malaysia, Japan, and Australia, are expected to expand the Asia Pacific regional market majorly. For instance, in Japan, MVNOs provide services such as online gaming, remote management of vending machines, M2M, and surveillance. In the healthcare sector, they also offer voice-controlled services for patient monitoring and security applications.

Key Companies & Market Share Insights

Prominent Mobile Virtual Network Operator (MVNO) market players are Lyca Mobile, TracFone Wireless Inc., and KORE Wireless, among others. Geographic expansion remains the key focus of all the players operating in the market. For instance, Virgin Mobile is present in various countries, such as the U.S., Mexico, the U.K., Canada, Australia, Poland, France, and Saudi Arabia. It provides various services such as TV-on-demand, digital cable recorders, cable, broadband, television, and mobile and converged solutions.

Industry players are also adopting various strategic initiatives such as partnerships, mergers & acquisitions, collaborating with other firms to gain a competitive edge, and deploying better customer services. For instance,  in April 2023, the National Content & Technology Cooperative (NCTC) announced a partnership with AT&T to serve exclusive wireless carriers for all members of mobile service offerings. Some of the prominent players operating in the global mobile virtual network operator market are:

• Boost Mobile

• Consumer Cellular

• Cricket Wireless LLC.

• DISH Wireless L.L.C.

• FreedomPop

• Google LLC

• KORE Wireless

• Locus Telecommunications, LLC.

• Lyca Mobile

• Mint Mobile, LLC.

• Red Pocket Mobile

• Republic Wireless, Inc.

• Tello

• TextNow

• TracFone Wireless, Inc.

• TruConnect

• T‑Mobile USA, Inc.

• UVNV, Inc

• Verizon

• Virgin Plus

Mobile Virtual Network Operator Market Report Scope

Global Mobile Virtual Network Operator Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global mobile virtual network operator market report based on type, operational model, service type, contract type, end-use, and region:

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Business

  • Discount

  • M2M

  • Media

  • Migrant

  • Retail

  • Roaming

  • Telecom

• Operational Model Outlook (Revenue, USD Billion, 2018 - 2030)

  • Full MVNO

  • Reseller MVNO

  • Service Operator MVNO

• Service Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • 4G MVNO

  • 5G MVNO

  • Others

• Contract Type Model Outlook (Revenue, USD Billion, 2018 - 2030)

  • Prepaid MVNO

  • Postpaid MVNO

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Consumer

  • Enterprise

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Malaysia

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Colombia

    • Chile

    • Peru

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa